TA: Bitcoin Price Recovers, Why BTC Could Struggle Near 100 SMA

Bitcoin

Bitcoin price traded to a new swing low at $43,000 before correcting higher against the US Dollar. BTC is now facing a strong resistance near $47,000 and the 100 hourly SMA.

Bitcoin Price is Facing Hurdles

After a downside break below $48,000, bitcoin even extended its decline below the $45,000 support level. BTC tested the $43,000 zone and it settled below the 100 hourly simple moving average.

It is currently correcting higher and trading above the $45,000 level. There was a break above the 50% Fib retracement level of the recent decline from the $48,307 high to $43,004 low.

Bitcoin is now approaching a couple of important hurdles, starting with $47,000. The 100 hourly simple moving average is near the $47,000 level to act as a resistance. The 76.4% Fib retracement level of the recent decline from the $48,307 high to $43,004 low is also at $47,050.

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The next major resistance is near the $48,000 level. There is also a key bearish trend line forming with resistance near $48,000 on the hourly chart of the BTC/USD pair. To start a strong increase, the bulls need to clear the 100 hourly SMA and then $48,000. The next major resistance could be $50,000, above which the bulls are likely to gain strength.

More Losses in BTC?

If bitcoin fails to continue higher above the $47,000 and $48,000 resistance levels, there could be more losses. An initial support on the downside is near the $45,000 level. The first major support is now near the $43,800 zone. If there is a clear break below the $43,800 support, the price could test the $42,000 support zone. Technical indicators: Hourly MACD – The MACD is slowly gaining momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now back above the 50 level. Major Support Levels – $45,000, followed by $43,800. Major Resistance Levels – $47,000, $48,000 and $50,000.
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